As mentioned in the Introduction, the economy as a whole has its ups and downs. For example, business in America’s shopping malls was depressed in 2008, because the economy was in a recession. While the economy had begun to recover in 2009, the effects of the downturn were still being felt—
10. One person’s spending is another person’s income. |
11. Overall spending sometimes gets out of line with the economy’s productive capacity. |
12. Government policies can change spending. |
TABLE 1-
To understand recessions and recoveries, we need to understand economy-